NIB prices 5-year USD 1.25bn global benchmark

28.5.2010 • News

On 27 May 2010, NIB priced a new 5-year Global USD 1.25 billion benchmark transaction. This is the Bank’s second public benchmark this year.

The issue has a final maturity of 15 July 2015, pays a semi-annual coupon of 2.500% and has an issue price of 99.760%. Credit Suisse, HSBC, Nomura and RBC were the lead managers for the transaction. BNP, Nordea and RBS acted as co-managers.

“The market welcomed the transaction with robust investor demand and the orderbook reached USD 1bn in just two hours of bookbuilding,” says Jens Hellerup, Head of Funding and Investor Relations at NIB. Despite the volatile market backdrop, NIB was able to achieve tight pricing in line with recent transactions by the Bank’s peer group.

“With all the worries about the recent developments in Europe, it was good to see that international investors are acknowledging the strength of NIB’s shareholders and the quality of its assets,” says Mr Hellerup.

Jeremy Shaw, Head of SSA Syndicate, Nomura comments: “By reacting quickly to constructive market conditions and a short window of opportunity, NIB has executed a highly successful, oversubscribed and increased global deal, pricing tighter than initial guidance and with an order book of the highest quality. This would be impressive in any market but it is outstanding in the current environment.”

The quality of the orderbook enabled the issuer to price at USD Midswaps +6 bps, inside the initial guidance level. Of the investors that subscribed to the issue, central banks and official institutions accounted for 58%, followed by fund managers and private banks. EMEA and Asia dominated in the geographical distribution of the investors.

With this transaction, NIB has now completed almost 70% of its EUR 4.1 annual funding programme.